Message-ID: <20088535.1075859194865.JavaMail.evans@thyme> Date: Wed, 2 Jan 2002 06:25:26 -0800 (PST) From: schwabalerts.marketupdates@schwab.com To: jeff.dasovich@enron.com Subject: Morning Market View for January 2, 2002 Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Schwab Alerts X-To: Dasovich, Jeff X-cc: X-bcc: X-Folder: \Jeff_Dasovich_Jan2002\Dasovich, Jeff\Deleted Items X-Origin: Shankman-J X-FileName: jshankm (Non-Privileged).pst Charles Schwab & Co., Inc. Email Alert Morning Market View(TM) for Wednesday, January 2, 2002 as of 9:30AM EST Information provided by Schwab Center for Investment Research STOCKS SLIGHTLY HIGHER TO KICK OFF NEW YEAR Against the backdrop of little corporate or economic news, stocks are poised to open slightly higher, with technology leading the way following an upbeat Semiconductor Industry Association report. Chipmaker Micron Technology (MU,31,f2) is higher in premarket activity following news that a potential partner raised DRAM prices by 30%. Treasuries are slightly lower, while global markets are mixed as today marks the official transition to the euro currency in the euro-region. Chipmakers could get a boost this morning after the Semiconductor Industry Association (SIA) reported that global sales of semiconductors rose 1.6% in November to $10.6 billion, the second consecutive monthly increase after October's sales rose 2.5% to $10.44 billion. SIA also indicated the industry is on pace to realize 4.7% growth in 4Q sequential sales. Continuing the improving theme, shares of Micron Technology are higher in the premarket session after South Korea's Hynix Semiconductor (HXSCF,0.80) raised the price of its memory chips by 30%, its third increase in a month. Separately, Hynix indicated this morning that it will wrap up merger talks with Micron this month. Media conglomerate Walt Disney Co. (DIS,21,f2) was granted a temporary restraining order prohibiting satellite-TV operator EchoStar Communications (DISH,27,f1) from dropping the Dow component's ABC Family channel from its listings. EchoStar claims Disney's purchase of ABC Family from News Corp. (NWS,32) in October voided the network's contract. ---------------------------------------------------------------- TREASURY AND ECONOMIC SUMMARY Bonds are lower across the curve in front of today's Institute for Supply Management's manufacturing index, scheduled for a 10:00 a.m. EST release. Formerly known as the National Association of Purchasing Management survey, the ISM manufacturing index is expected to rise to 46.0 in December from November's 44.5, according to a Dow Jones Newswires survey, indicating contraction at a decelerating pace in the sector. ---------------------------------------------------------------- WORLD MARKETS European bourses are lower amid a report that the euro-zone manufacturing PMI rose to 44.1 in December from November's 43.6, reflecting continued contraction in the sector at a slightly slower pace. The Bloomberg European 500 index was down 1.2% as of 8:52 a.m. EST, paced by declines in telecom equipment and energy stocks. Banking stocks, including Spanish outfit Santander Bancorp (SBP,19.41), were also lower after Argentina's new president indicated that he would remove the Argentinean peso's peg to the U.S. dollar, raising devaluation concerns. The euro is higher against the dollar following a smooth, official transition to the new currency in the euro-region. Asian stocks were generally higher, led by semiconductor stocks following Hynix Semiconductor's 30% increase in the price of its DRAM chips. Japan's Nikkei 225 index remains closed for a national holiday, while the yen is trading slightly lower against the dollar. ---------------------------------------------------------------- FUTURES WATCH In the March Globex futures contract as of 8:52 a.m. EST, the S&P 500 index was unchanged while the Nasdaq 100 index was 9 points higher (10 points above fair value). The March DJIA futures contract was up 49 points (1 point below fair value), and the February crude oil futures traded on the NYMEX were up $0.20 at $20.04/barrel. 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